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INTRODUCTION
Respondent Paul V. Gallegos was a first-time successful candidate for District Attorney
of Humboldt County in a local election held on March 5, 2002. Respondent Paul V. Gallegos for
District Attorney (the “Committee”) was the controlled committee of Respondent Gallegos.
Respondent Stephen P. Arnot served as treasurer of Respondent Committee.
The Political Reform Act (the “Act”)1 requires a candidate and his or her controlled
committee to file periodic campaign statements disclosing contributions received and
expenditures made. On campaign statements, the Act also requires a candidate and his or her
controlled committee to disclose, among other things, the occupation and employer of
contributors of $100 or more, and to return within 60 days any contribution for which they do
not have all required contributor information. In this matter, Respondents failed to disclose a
$2,500 late contribution in a properly filed late contribution report; failed to disclose occupation
and employer information for 20 contributions of $100 or more; failed to return contributions
within 60 days of receipt, totaling $6,835, for which they did not have occupation and employer
information; and failed to timely file a post-election semi-annual campaign statement.
For the purposes of this stipulation, Respondents’ violations of the Act are stated as
follows:
COUNT 1: Respondents Paul V. Gallegos, Paul V. Gallegos for District Attorney, and
Stephen P. Arnot failed to disclose the receipt of a $2,500 late contribution
from John Frame in a properly filed late contribution report, by the
February 27, 2002 due date, in violation of section 84203, subdivision (a).
COUNT 2: Respondents Paul V. Gallegos, Paul V. Gallegos for District Attorney, and
Stephen P. Arnot failed to disclose the occupation and employer
information for eight contributions of $100 or more totaling $1,895 on a
second pre-election campaign statement, for the reporting period January
20, 2002 through February 16, 2002, filed on or about February 21, 2002,
in violation of section 84211, subdivision (f).
COUNT 3: Respondents Paul V. Gallegos, Paul V. Gallegos for District Attorney, and
Stephen P. Arnot failed to return within 60 days of receipt eight
contributions of $100 or more, totaling $1,895, that were received during
the second pre-election reporting period January 20, 2002 through
February 16, 2002, and for which they did not have occupation and
employer information, in violation of section 85700.
COUNT 4: Respondents Paul V. Gallegos, Paul V. Gallegos for District Attorney, and
1
The Political Reform Act is contained in Government Code sections 81000 through 91014. All statutory
references are to the Government Code unless otherwise indicated. Commission regulations appear at title 2,
California Code of Regulations section 18109 through 18997. All references to regulations are to title 2, division 6
of the California Code of Regulations.
1
COUNT 5: Respondents Paul V. Gallegos, Paul V. Gallegos for District Attorney, and
Stephen P. Arnot failed to return within 60 days of receipt twelve
contributions of $100 or more, totaling $4,940, that were received during
the semi-annual reporting period February 17, 2002 through June 30,
2002, and for which they did not have occupation and employer
information, in violation of section 85700.
COUNT 6: Respondents Paul V. Gallegos, Paul V. Gallegos for District Attorney, and
Stephen P. Arnot failed to disclose the occupation and employer of twelve
contributions of $100 or more totaling $4,940 on a post-election semi-
annual campaign statement, for the reporting period February 17, 2002
through June 30, 2002, filed on or about March 13, 2003, in violation of
section 84211, subdivision (f).
An express purpose of the Act, as set forth in section 81002, subdivision (a), is to ensure
that receipts and expenditures in election campaigns be fully and truthfully disclosed, in order
for voters to be fully informed and improper practices inhibited. To that end, the Act sets forth a
comprehensive campaign reporting system.
Section 84200 requires a candidate and his or her controlled committee to file two semi-
annual campaign statements each year. The first semi-annual campaign statement covers the
reporting period January 1 to June 30, and must be filed by July 31. The second semi-annual
campaign statement covers the reporting period July 1 to December 31, and must be filed by
January 31 of the following year.
Section 84200.5, subdivision (a) requires a candidate and his or her controlled committee
to file two pre-election campaign statements before an election in which the candidate appears
on the ballot. For elections held on a date in other than June or November of an even-numbered
year, section 84200.8 requires that the first pre-election campaign statement for the reporting
period ending 45 days before the election be filed no later than 40 days before the election, and
that the second pre-election campaign statement for the reporting period ending 17 days before
the election be filed no later than 12 days before the election.
Under section 84203, subdivision (a), when a candidate and his or her controlled
committee receives a late contribution, the candidate and the committee must file a late
2
Section 84211, subdivision (f) requires a candidate and his or her controlled committee to
report on each of their campaign statements the following information about a person if the
cumulative amount of contributions received from that person is $100 or more and a contribution
has been received from that person during the reporting period covered by the campaign
statement: (1) the contributor’s full name; (2) the contributor’s street address; (3) the
contributor’s occupation; (4) the name of the contributor’s employer, or if self-employed, the
name of the contributor’s business; (5) the date and amount of each contribution received from
the contributor during the reporting period; and (6) the cumulative amount of contributions
received from the contributor. As required by section 85700, subdivision (a), a candidate must
return within 60 days of receipt any contribution of $100 or more for which the candidate does
not have on file in his or her records the name, address, occupation, and employer of the
contributor.
As required by section 85700, subdivision (a), a candidate must return within 60 days of
receipt any contribution of $100 or more for which the candidate does not have on file in his or
her records the name, address, occupation, and employer of the contributor.
Under section 84100 and regulation 18427, subdivision (a), it is the duty of a
committee’s treasurer to ensure that all requirements of the Act concerning the receipt and
expenditure of funds, and the reporting of such funds, are complied with. A committee’s
treasurer may be held jointly and severally liable, along with the committee, for any reporting
violations committed by the committee. (Sections 83116.5 and 91006.)
Respondent Paul V. Gallegos was a first-time successful candidate for District Attorney
of Humboldt County in a local election held on March 5, 2002. During the election,
Respondents Gallegos and Committee received contributions totaling $44,007, and made
expenditures totaling $43,978. Respondent Arnot, as treasurer for the Respondent Committee,
prepared, reviewed and signed all campaign statements.
COUNT 1
Failure to Timely Disclose Late Contribution in Late Contribution Report
COUNTS 2 and 6
Failure to Disclose Occupation and Employer Information
On February 21, 2002, Respondents filed a second pre-election campaign statement for
the reporting period January 20, 2002 through February 16, 2002. During the second pre-
election reporting period, Respondents received 17 contributions of $100 or more totaling
$3,633. Of those 17 contributions, Respondents did not disclose occupation and employer
information for eight contributions totaling $1,895.
COUNTS 3 and 5
Failure to Return Contributions Due to Lack of Contributor Information
On February 21, 2002, Respondents filed a second pre-election campaign statement for
the reporting period January 20, 2002 through February 16, 2002. During the second pre-
election reporting period, Respondents received 17 contributions of $100 or more totaling
4
By failing to return 20 contributions of $100 or more totaling $6,835 for which they did
not have sufficient contributor information and that were received during two separate reporting
periods, Respondents committed two violations of section 85700. As a condition of this
stipulation, Respondents have obtained the necessary occupation and employer information for
the 20 contributions and have disclosed that information on amended campaign statements.
COUNT 4
Failure to Timely File Post-election Semi-annual Campaign Statement
On March 13, 2003, Respondents ultimately filed the late semi-annual campaign
statement approximately seven months after the filing due date. On the semi-annual campaign
statement, Respondents disclosed contributions totaling $8,025, and expenditures totaling
$21,991.
CONCLUSION
This matter consists of six counts of violating the Act, which carry a maximum
administrative penalty of $5,000 per violation, for a total of $30,000.
Regarding Count 1, the typical stipulated administrative penalty for failing to disclose a
late contribution in cases resolved outside the Commission’s Streamlined Late Contribution
Enforcement Program is 15 to 25 percent of the amount of the undisclosed contribution,
depending upon the circumstances of the violation. In this matter, as the amount of the
undisclosed late contribution is relatively low, imposition of an administrative penalty at the
lower end of the penalty range in the amount of $500 is appropriate.
5
Regarding Counts 3 and 5, the Commission has not yet established a typical stipulated
administrative penalty for the failure to return contributions for which the recipient does not have
all required information regarding the contributor. Although the total monetary amount of the
contributions for which Respondents had insufficient information was relatively low, those
contributions comprised for more than 50 percent of the funds raised during the second pre-
election and post-election semi-annual reporting periods. As such, imposition of a penalty
around the middle of the penalty range, in the amount of $2,250 per violation, is appropriate.
Regarding Count 4, the typical stipulated administrative penalty for the failure to timely
file a post-election semi-annual campaign statement has ranged from $1,500 to $2,500,
depending on the circumstances of the case. In this matter, as Respondents engaged in
significant financial activity during the semi-annual reporting period, imposition of an
administrative penalty at the upper end of the penalty range in the amount of $2,000 is
appropriate.
Accordingly, the facts of this case justify a total administrative penalty of $10,000.